Brampton, ON -- (SBWIRE) -- 09/28/2017 -- Debt consolidation involves a single loan that is used to pay off multiple small ones. Small debts can be combined in order to lower fees, reduce interest rates and only have a single loan to pay. Interest rates may differ depending on whether the loan is secured or not. Personal loans like credit cards are an example of unsecured loans which attract 19 to 29.9%. Mortgages are debts which are secured by real estate and because of this, they are available at lower interest rates. The Mortgage Broker Store team can arrange debt consolidation loans in Brampton. They work with different lenders who are willing to follow different rules when issuing loans.
Benefits of Debt Consolidation Loans
Banks and private lenders will accept homes as collateral for low-interest mortgages. Mortgages are a less risky type of loan as the lender can sell the home and recoup their investment if payments are not made. With a mortgage, you typically get large amounts of money, unlike credit cards with low limits. You can borrow upwards of $20,000 to use for any purpose you deem fit.
Uses of Debt Consolidation Loans
These loans have many uses depending on the individual's circumstances. They make it easier to manage monthly loan payments for people who feel overwhelmed by multiple loans. By consolidating personal unsecured loans it is possible to save in the long run. Paying off credit cards will also lead to an improved credit score which in turn makes it easier to apply for better credit in the future.
Different Ways of Consolidating Debt
Setting up a mortgage for debt consolidation is possible in a number of ways. Refinancing an existing mortgage can be done when a new mortgage charges lower interest than the existing mortgage. If the existing mortgage offers a lower rate, then it may be best to set up a new second mortgage provided that the lender's requirements are met. To determine the best cause of action you should have a skilled mortgage broker look over your information.
Private Lenders of Debt Consolidation Loans
Banks offer the best interest rates overall but only private lenders have relaxed lending requirements that accommodate those who cannot qualify for traditional bank loans. Often, those seeking this type of loans have a habit of non-payment which led them to have a poor credit score. This is completely unacceptable by banks but private lenders overlook this factor and may approve mortgages based on the property and its value. Owing to this, private lenders pay major attention to the loan to value ratio of a property when making a lending decision. LTV (loan to value) ratio is calculated by dividing the value of debts by the selling price if the property. If a property has a mortgage of $50,000 and can be sold for $100,000 the LTV is 50%. In Brampton like most parts of Ontario, private lenders usually require an LTV to be 80% or lower in order to provide a mortgage. Mortgage Broker Store has a network of private lenders that they can reach out to on their customer's behalf.
About Mortgage Broker Store and Ron Alphonso
Mortgage Broker Store services many cities in the Canadian province of Ontario. It was founded by Ron Alphonso who has been the principal broker for more than a decade. The people of Brampton, Kitchener, Markham, Innisfil, Uxbridge, and Vaughan know him as the leading authority in matters involving real estate. Those who know him have either sought alternative financing or seen Ron on Toronto Life, Global News and other media where he is often featured. He leads a team of knowledgeable, passionate and hardworking mortgage brokers and agents who help clients in the province access loans that they couldn't access from banks. Ron always ensures that he responds to financial questions asked by people in search of expert opinion.
You can contact him directly on 416-499-2122 or email him at email@example.com.